Bolivia Cuts All Import Tariffs by 5% to Offset Flexible Exchange Rate Impact

Key summary

The Bolivian government has enacted Supreme Decree No. 5646 on June 29, 2026, reducing all import customs duties (Gravamen Arancelario: GA) by 5 percentage points effective July 6, 2026, through December 31, 2027. This measure aims to mitigate rising import costs following the shift from a fixed exchange rate regime to a flexible one on June 26, 2026, where the official starting rate was set at 9.73 Bolivianos per US dollar. Previously, Bolivia maintained a fixed rate of 6.86–6.96 Bolivianos per US dollar since November 2024. The new flexible system allows the Central Bank to publish daily rates based on financial institution transactions, resulting in an approximate 30% depreciation of the Boliviano against the previous buying rate for dollars. Sources indicate that unofficial dollar trading rates reached nearly 20 Bolivianos per dollar during periods of severe dollar shortages and declining foreign reserves. The tariff reduction applies to all product categories under the 2026 Import Tariff Schedule, lowering existing rates by exactly 5 points (e.g., from 40% to 35%, 35% to 30%, 30% to 25%). While Bolivia seeks financial assistance of at least $2.5 billion from the IMF and faces ongoing dollar scarcity, the government hopes this policy will ease pressure on consumer prices and support exporters like Thailand, whose potential goods include automobiles, machinery, electrical equipment, rubber products, plastics, processed foods, and consumer goods. The measure expires on December 31, 2027.